JPMorgan Sounds Alarm On Size Of US Debt, Warns Of Financial Crisis

 

After yesterday Goldman mocked Trump’s budget (ironic as it was Trump’s ex-Goldman Chief Economic Advisor who conceived it) and said it had zero chance of being implemented, today it was JPM’s turn to share some purely philosophical thoughts on the shape of future US income and spending, which as we learned yesterday could balance only if the US grows for 10 years at a 3% growth rate, something it has never done, while slashing nearly $4 trillion in in spending, something else it has never done.

What caught our attention in the note by JPM’s Jesse Edgerton was his discussion on the thorniest issue surrounding the US: its unprecedented debt addition, what America’s debt/GDP will look like over the next 30 years, and whether there is any chance it could decline as conservatives in government hope will happen. Continue reading

US to Sell Off its Strategic Emergency Oil Reserves

The US government plans to sell half of the Strategic Emergency Oil Reserves and gasoline. The days of OPEC embargoes of the 1970s are now long past. The government plans to increase its budget for the financial year by $500 million. Therefore, over the next decade, the government wants to increase financial leeway by as much as $16.6 billion. With the US at a net exporter level and the shift toward electric cars, it becomes questionable if we need the Strategic Emergency Oil Reserves any more. Continue reading

Trump Threatens to Stop Germany from Selling Cars in US

Trump Threatens to Stop Germany from Selling Cars in US

An employee holds a BMW logo on the production line of the BMW C evolution electric maxi-scooter at the BMW Berlin motorcycle plant February 23, 2015

 

President Donald Trump reportedly threatened the ‘Very Bad’ Germans from selling their cars in the United States.

(WASHINGTON, DC) U.S. President Donald Trump has threatened to stop German car sales in America during a meeting with European officials in Brussels on Thursday, Germany’s Der Spiegel reported.

“The Germans are bad, very bad,” said Trump, as quoted by Spiegel. Continue reading

A New Financial System is Being Born

 

If Bitcoin blew you away when you first discovered it, and continues to do so to this day, Spiral Dynamics can help explain why. Bitcoin was an expression in the physical world of the newly emergent leading-edge integral level consciousness. It drew lessons from history and attempted to take the best of orange and green worldviews and incorporate them into an entirely new form of money. We see the clear presence of free markets and individualism, as well as the intentional separation of the system from dominator hierarchies (bureaucratic government meddling), which had corrupted all money before it. Its greenness is evident in the fact that by design no individual or company controls the network. Global, decentralized, revolutionary technology. This is perhaps the perfect example of integral consciousness operating on our planet at this time from an economics standpoint, and why it has captured the imagination of so many, while at the same time being violently rejected by so many others.


Although I had heard about it much earlier, I didn’t truly start investigating Bitcoin until the summer of 2012. The more I learned the more my mind was blown away, and for a while I couldn’t think about anything else. What truly solidified its real world usefulness to me was when I discovered it had been used by Wikileaks to accept payments in the midst of a financial services blockade against the renegade publisher. This realization inspired my first Bitcoin related post in August 2012 titled, Bitcoin: A Way to Fight Back Against the Financial Terrorists?  Continue reading

Saudi Arabia plan to hike oil prices will BACKFIRE & boost US shale producers, say experts

saudi arabia oil prices

Saudi Arabi’s OPEC plan to raise oil prices could fail say experts [GETTY]

 

SAUDI Arabia’s waning grip on oil prices could loosen further if it sticks to a plan to limit supply in a desperate bid to drive up demand, according to experts.

Naeem Aslam, chief market analyst at ThinkMarkets, said: “In our eyes, OPEC is not the superpower it used to be and it is the US shale oil producers who changed the game. Continue reading

This “One Belt, One Road” Map Shows China’s Unstoppable Global Growth

 

Look at a One Belt, One Road map showing how much of the world China’s new Silk Road economic initiative will involve and you’ll see one thing right away: This is a massive global undertaking with incredible potential – for China, and investors.

China could invest over $5 trillion into building its Belt and Road initiative over the next 10 years. That could mean a near 50% profit windfall for investors who know where to look… Continue reading

“This Is Probably Just The Beginning” – Chinese Banks Are In Big Trouble

 

With the crackdown on financial system leverage underway, Chinese banks (and securities firms) are in big trouble. As we noted previously, China’s bond curve is inverted, yields are surging, and Chinese regulatory decisions shutting down various shadow-banking pipelines has crushed securities firms’ stocks. However, as Bloomberg points out, as China’s deleveraging efforts cut into banks’ profit margins, rising base funding costs and interbank credit risk concerns have pushed banks’ cost of borrowing beyond the rate they charge customers for loans for the first time in history. Continue reading

EU SUPERSTATE: Brussels ‘to force EVERY member state to adopt euro by 2025’

Eurozone

The EU wants every member state to adopt the Euro by 2025, reports claim [GETTY]

 

BRUSSELS officials want every European Union country to be using the euro by 2025, a bombshell new report has claimed.

Nine of the 28 member state in the EU are currently not part of the single currency.

The UK and Denmark are exempt, but the remaining seven nations all agreed to adopt the euro when they joined the bloc. Continue reading

Merkel worried about Brexit Britain gaining Economic Advantage

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360b / Shutterstock.com

 

Speaking to a group of businesses in Berlin, Merkel said that once the UK formally leaves the bloc, which will currently set to be by the end of March 2019, we will be able to have a bonfire of EU regulations which will make us even more competitive on the world stage, gaining a possible economic edge. Continue reading

Saudis May Enter The Shale Game

 

Flooding the market has quickly emptied the kingdom’s checkbook

In case you missed the past three years, on Thanksgiving Day 2014, OPEC announced it would not cut oil production in the name of gaining customers and growing market share for its members (widely interpreted as Saudi Arabia).

That announcement set off a two + year global commodities price downturn that sent oil from triple digits all the way down to $26 and fostered two years of pain and indigestion in the shale beds of North America that companies are just now getting past. Continue reading

World Leaders Gather in Beijing While the US Sinks into Irrelevancy

The United States is fractured and permanently scarred with very little diplomatic room to maneuver, and as the article states, doesn’t even know it. We’re looking at a new world shaping up within the next 10 years… a new world without the United States having a voice in its affairs. This is an unprecedented new chapter in world history that the old order doesn’t recover from. If you’re an American, get used to second or third-rate living standards and all the problems that come with it.

To add clarification: President Trump has a great chance in saving America from ruin, and let’s hope he will. Where he has almost zero chance is in saving it’s standing in the world. An alternative world structure has already been built and members are being filtered in. The ‘on button’ is waiting to be pushed. All that needs to happen is an event, such as global economic collapse, that sets America back and simultaneously provides the new world structure a window of opportunity to spring into first place.

 

World Leaders Gather in Beijing While the US Sinks into Irrelevancy

 

While vaudevillian comedy-like shouting matches broke out in the West Wing of the White House between President Donald Trump and his senior advisers and between the White House press secretary and various presidential aides, world leaders gathered in Beijing to discuss the creation of modern-day land and maritime «silk roads» to improve the economic conditions of nations around the world. Nothing more could have illustrated the massive divide between the concerns of many of the nations of the world and those of the United States, which is rapidly descending into second-rate power status, along with its NATO allies Britain, France, and Germany. Continue reading

More EU integration Inevitable: Mercron will be forced to federal EU or eurozone will die

Angela Merkel and Emmanuel Macron

German chancellor Angela Merkel and new French president Emmanuel Macron [GETTY]

 

THE European Union single currency will only survive through even GREATER integrations, analysts have warned.

Eurozone nations will have to find ways of working more closely together despite growing anti-EU sentiment in some countries and the fallout from Brexit.

Analyst Antonio Barroso, managing director at Teneo Intelligence, told CNBC: “I think further integration is inevitable, especially if member states want to make the euro zone sustainable in the long term. Continue reading

Financial Crash Warning: Markets to ‘be hit’ by triple collapse ‘worse’ than 2008 crisis

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The next crash could be even bigger than 2008, according to Mike Maloney [GETTY]

 

THE next financial crisis will be worse than the collapse seen in 2008, and investors should seek shelter from the storm in precious metals and crypto currencies, according to an analyst who has predicted a triple market burst.

Mike Maloney said housing, bond and stock markets are now in for a big fall, after forming an ‘everything bubble’ which will have devastating effects when it bursts.

The crash will push investors into gold, silver and the likes of bitcoin, according to the gold analyst. Continue reading

Financial Weapons Of Mass Destruction: Top 25 US Banks Have 222 Trillion Dollars Derivatives Exposure

 

The recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes.  Today, the top 25 U.S. banks have 222 trillion dollars of exposure to derivatives.  In other words, the exposure that these banks have to derivatives contracts is approximately equivalent to the gross domestic product of the United States times twelve.  As long as stock prices continue to rise and the U.S. economy stays fairly stable, these extremely risky financial weapons of mass destruction will probably not take down our entire financial system.  But someday another major crisis will inevitably happen, and when that day arrives the devastation that these financial instruments will cause will be absolutely unprecedented.

During the great financial crisis of 2008, derivatives played a starring role, and U.S. taxpayers were forced to step in and bail out companies such as AIG that were on the verge of collapse because the risks that they took were just too great. Continue reading

EU prepares to unleash ‘NUCLEAR OPTION’ on Hungary: Brussels loses patience with Orban

EU Hungary

The EU is considering removing Hungary’s voting rights [GETTY]

 

THE EUROPEAN UNION is considering the extraordinary step of stripping Hungary of its voting rights in Brussels following a “serious deterioration” in the country’s stance with the bloc.

MEPs last night voted heavily in favour of taking sanctions against the state for a “serious and persistent” breach in EU values including accepting migration quotas.

These sanctions could involve reducing voting rights for EU diplomats, known around Brussels as the “nuclear option”.  Continue reading